PPG has entered into an agreement with both Metropolitan Life Insurance Company (MetLife) and Massachusetts Mutual Life Insurance Company (MassMutual) to provide annuity benefits to approximately 13,400 retirees in PPG’s defined benefit (DB) pension plans, representing pension obligations of $1.6 billion.
PPG, a Fortune 200 company, is a global manufacturer of paints, coatings, optical products, specialty materials, glass and fiber glass, with operations in nearly 70 countries around the world.
The transaction involves two groups of retirees—salaried and non-union hourly. For 11,000 salaried retirees, MetLife and MassMutual are each providing 50% of the monthly benefits. MassMutual will act as lead administrator. MetLife will pay its portion of the benefits through an administration agreement with MassMutual.
MetLife will be the exclusive provider for the non-union hourly group, making payments directly to the retirees.The transaction, subject to certain conditions, is expected to close later in 2016. It will be executed with a combination of cash and assets-in-kind.